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[August 07, 2014]
KBank offers K-MONEY with 500-Baht minimum investment
(ENP Newswire Via Acquire Media NewsEdge) ENP Newswire - 07 August 2014 Release date- 05082014 - KASIKORNBANK and Kasikorn Asset Management are offering the K Money Market Fund (K-MONEY) with a 500-Baht minimum investment to acquire new individual investors, maintaining the largest money market fund in Thailand and reinforcing KBank's leadership in the mutual fund business.
According to Mr. Pakorn Partanapat, Executive Vice President of KASIKORNBANK, many customers still lack proper understanding of mutual fund investments, as they perceive that mutual funds are risky, need a lot of money for investment, and take time for monitoring. Therefore, KBank and KAsset are promoting low-risk mutual fund investments with K-MONEY, which is invested in bank deposits and debt instruments of the public and private sector, as well as those of secure financial institutions at home and abroad. The minimum investment requirement has been reduced to 500 Baht from 5,000 Baht for customers' easier access to the investment product. Its returns are higher than that of fixed deposit rates, yet have high liquidity with daily tradable service at any KBank branch.
Mr. Pakorn added that K-MONEY is suitable for investors who are new to savings management and personal investments. Upon gaining more experience, they will see that investment is simple and have confidence to make future investments in other more-complex mutual funds for even higher returns. The Bank's K-Expert team will be available for advisory service in professional investments, thus providing a joint promotion of complete financial and investment knowledge for investors.
Mr. Chongrak Rattanapian, Executive Chairman of Kasikorn Asset Management Co., Ltd., said K-MONEY is appropriate for those who wish to park their money in awaiting future investment or to invest in the short term, while offering returns better than that of the three-month deposit rate, with tax savings. K-MONEY's past performance is satisfactory, consistently beating the industry benchmark. Its returns over the past three months registered 2.08 percent per annum, while its three-year return was recorded at 2.5 percent per annum (as of June 30, 2014). As of July 29, 2014, K-MONEY was the country's largest money market fund, with assets of 101.55 billion Baht.
Mr. Chongrak added that Thailand's economic recovery will be more apparent in the wake of the political stability under the National Council for Peace and Order (NCPO). Government budget disbursement and investment projects should be advanced more smoothly. However, GDP growth is unlikely to accelerate much, while Thailand's inflation rate remains under control. Central banks in many regions, including the US and Europe, are maintaining low policy rates. This should thereby encourage the Bank of Thailand's Monetary Policy Committee to keep its policy rate unchanged until the end of this year, while bond yields may increase slightly due to the economic recovery. K-MONEY is now an interesting investment tool for those waiting for the right time to invest in other securities.
Interested persons may subscribe K-MONEY investment units at a minimum investment of 500 Baht, and can obtain the prospectus at any KBank branch, or by calling the K-Contact Center at Tel. 02-888-8888, or visiting www.kasikornasset.com; or ask for more information at the KAsset Contact Center at Tel. 02-673-3888.
Past Performance of K-MONEY and fixed deposit rates (% per annum) 3 months 6 months 1 year 3 years K-MONEY 2.08% 2.18% 2.22% 2.50% Average fixed deposit rate after withholding tax* 1.11% 1.24% 1.44% 1.72% Benchmark** 1.81% 1.92% 2.08% 2.44% Source: KAsset, as of June 30, 2014 *An average of three-month fixed-deposit rates of Bangkok Bank, KASIKORNBANK and Siam Commercial Bank quoted as of June 30, 2014, for individuals making a 1-million-Baht deposit, over the past three and six months, and one and three years (after a withholding tax deduction of 15 percent). The figures are returns per annum.
**The benchmark includes an average of three-month, six-month, and one-year fixed-deposit rates of Bangkok Bank, Siam Commercial Bank, and KASIKORNBANK (50%); Total Return Index of short-term debentures with at least an 'A-' credit rating or higher (40%); and three-month interbank rates (USD) plus an average credit spread of three-month securities with 'A' rating throughout the return calculation period with currency-hedging cost adjustments (10%). The fund performance assessment has been prepared in accordance with the Association of Investment Management Companies (AIMC)'s standard.
Investments contain risk. Investors should study the prospectus before making a decision to invest. K-MONEY's policy is to cover currency risk for the entire amount invested.
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